Chief Minister's Micro Finance Initiative

Description
The “Chief Minister& 39;s Micro Finance Initiative CMMFI ” was launched by the Department of Finance, Government of Nagaland, aims to promote access to credit for economic activities undertaken by individual farmers, entrepreneurs, Self-Help Groups SHGs , and Farmer Producer Organizations FPOs . The scheme will have the following components: - Provide for interest subvention or subsidy for credit extended by banks to new borrowers under the category of Self-Help Groups, Farmer Producer Organizations, and Individuals for identified activities. - Provide for additional interest subvention, over and above what is already provided in existing central government schemes, to make credit more attractive and affordable. - Provide collateral-free credit access to Entrepreneurs for Micro and Small Enterprises. Beneficiaries seeking non-subsidy linked loans and fresh beneficiaries seeking subsidy-linked loans. Objectives of the Scheme: - To increase farmers& 39; income by increasing investment in the sector, quality inputs, and technology. - To promote investment in Agri & Allied and in the small enterprise sectors. - To promote credit discipline and encourage the Banking Sector to support Agricultural and small enterprise sectors in the State. - To improve the Agri-marketing network and infrastructure in the State. - To promote private enterprise. - To provide collateral-free credit access to aspiring entrepreneurs. Scheme Implementing Agencies: 1. At the State HQ Level • Nodal Department shall be the Finance Department. • Department of Agriculture, Horticulture, Veterinary and Animal Husbandry, Fisheries, Industries & Commerce, Nagaland State Rural Livelihood Mission, and Investment & Development Authority of Nagaland shall provide the necessary technical support. 2. At the District Level • District Level Implementation cum Monitoring Committee DLIMC headed by the Deputy Commissioner. • Participating Banks. Salient Features of the Scheme: The proposed Scheme is a bank credit-linked subsidy scheme to be implemented in a time-bound manner with participation from various stakeholders - government, bankers, farmers, and entrepreneurs. Broad features of the scheme are: - All banks, including the Nagaland Cooperative Banks, will be eligible and shall be encouraged to participate in the Scheme. - There will be a district-wise allocation, which will be decided by a State Level Committee headed by the Chief Secretary. This will help avoid skewed distribution of projects regionally. - Equal emphasis will be given to all projects, with focus on bankability rather than a particular trade/activity. - The borrowers under the scheme will be monitored at the district level by an Implementation Committee headed by the Deputy Commissioner, with members drawn from the various departments. Extension of support to the beneficiaries will be provided by the respective departments. The scheme will involve active participation of the banks and the district machinery to transfer the benefits of the subsidy assistance while creating sustainable livelihoods. - The application will be scrutinized by the concerned Bank Branch, and where required, the technical inputs from Nodal Department may be sought for finalizing the beneficiaries seeking capital-subsidy, that too only in cases where loan amount is above 10 Lakhs. For all other categories of beneficiaries, banks shall do the due diligence. - The banks shall disburse the entire approved loan and subsidy. The subsidy shall be back-ended and disbursed through the banks. The controlling office or the nodal bank of the financing bank shall submit the claims immediately after release of the first installment of the loan. - The details of the eligibility criteria, pattern of assistance, the procedures to be adopted, and the framework of guidelines for implementing the scheme shall be as laid down in this scheme.

Benefits
• Funding Pattern and Subsidy Support
• Financing through Banks
• • All banks in the State of Nagaland will be eligible as lending institutions in the Scheme.
• • All participating banks must develop product codes for the Scheme.
• • The quantum of loan, subsidy, and borrower's margin will be as follows:

Eligibility Criteria
1. > ***Eligible Beneficiaries***
2. ***A. Individual Farmers and Entrepreneurs:*** Individuals who are keen to invest in Agri-allied activities, Entrepreneurs, and other activities for a better livelihood would be assisted as per the norms of the Scheme.
3. **Eligibility Criteria**
4. They should not be defaulters to any bank.
5. They should not be serving Government Employees.
6. They should have sufficient land for land-based activity in the name of the borrower or on lease with a remaining period of the lease agreement not less than the tenure of the loan. In the case of non-cadastral areas, a document issued by the concerned Village Council and countersigned by the area administrative officer certifying the land-holding shall be sufficient for the purpose.
7. They should generally have adequate experience or training in respect of the activity for which they seek assistance.
8. ***B. Self Help Groups (SHGs):********* SHGs have been a key element of credit extension to the poor and small entrepreneurs. They undertake activities in a group mode which benefit the community as well as provide meaningful livelihood opportunities to the members. SHGs have been supported under various programs being implemented in the State. The Government of Nagaland endeavors to further support the SHGs through this scheme to expand the scope of economic activities that can supplement the needs, especially of the rural household.
9. **Eligibility Criteria**
10. All SHGs (including non-NSRLM SHGs) fulfilling the Panchasutra concept i.e., holding regular meetings; regular savings; regular inter-loaning; timely repayment; and up-to-date books of accounts shall be considered for assistance under the Scheme.
11. SHGs would be financed, primarily, by the bank where they have their Bank Account.
12. SHGs shall be graded on the basis of the “Panchsutra” concept.
13. The group members should have sufficient land, either self-owned or on lease, to carry out land-based activities.
14. ***C. Farmer Producer Organizations (FPOs)******:*** Farmer Producer Organizations are Farmers’ Collectives with characteristics of legal personality and limited liability similar to a company, can attract investments, modern technology, catalyze aggregating and marketing of bulk produce to fetch better remuneration and in turn lead to improved means of production. Although very few in number at present, in the state, they present huge opportunities and have been considered as eligible entities under the scheme.
15. **Eligibility Criteria**
16. The FPO should have been registered and should have at least three years of Audited Balance Sheet.
17. Board members of FPOs and all members should be non-defaulters to any bank/financial institutions.
18. The FPO should not be in losses.
19. The FPO should have at least 100 shareholders and a minimum paid-up capital of Rs 1,00,000.
20. The activity should be relevant to the prime activity of the FPO.
21. The maximum borrowing of the FPO should be restricted to 2/3rd of their paid-up share capital or as per the borrowing power of their bye-laws.
22. At least 80% members should be participating in and benefitted by the FPO either through supply of input or aggregation of produce and marketing.
23. > **Eligible Lending Institutions**
24. As the subsidy is credit-linked, the projects will be eligible for subsidy only if financed by either a commercial bank (Public & Private Sector Banks), the Nagaland Rural Bank, or the Nagaland State Cooperative Bank.

Application Process
Step 1: Step 1: Eligible applicants must apply online through the Credit Portal of Nagaland.
Online
Step 1: Eligible applicants must apply online through the Credit Portal of Nagaland.

Step 2: Step 2: On the homepage, click on the ‘Register’ button. Select the type of beneficiary, enter the legal name, and set a password. Register here
Online
Step 2: On the homepage, click on the ‘Register’ button. Select the type of beneficiary, enter the legal name, and set a password. Register here

Step 3: Step 3: After successful registration, log in using the registered email or mobile number along with the password. Login here
Online
Step 3: After successful registration, log in using the registered email or mobile number along with the password. Login here

Step 4: Step 4: Fill out the application form, upload all mandatory documents, and submit the form.
Online
Step 4: Fill out the application form, upload all mandatory documents, and submit the form.

Required Documents
• Detailed Project Report
• Proof of Address
• Aadhaar Card
• PAN Card (PAN can be procured post application and can be submitted later)
• 3 Passport size photos (SHGs & FPOs have to submit 3 passport size photos of any two of the following:- 1. Treasurer 2. Chairman 3. Secretary)
• Bank Account Details (If it exists, otherwise have to open new account with the bank approving the loan)
• Udhyam Registration (For MSME projects and not for core Agri projects)
• Land Holding certificate (only for Piggery Loans and other Livestock loans excluding Mithun rearing)
• License (For trade/business establishments):
• For Urban Areas: Business trade license in case of business establishment in urban areas.
• For Rural Areas: NOC from village council if business is under rural areas

Frequently Asked Questions
Q: Who launched the CMMFI scheme?
A: The scheme was jointly launched by the Union Finance Minister, Nirmala Sitharaman, and the Chief Minister of Nagaland, Neiphiu Rio, on August 23, 2022.

Q: What is the main objective of CMMFI?
A: The scheme aims to enhance farmers' income by promoting investment in agriculture and allied sectors, improving infrastructure, and supporting private enterprise.

Q: Who are the implementing agencies of CMMFI?
A: At the state level, the Finance Department is the nodal agency. At the district level, the District Level Implementation cum Monitoring Committee (DLIMC), headed by the Deputy Commissioner, oversees implementation.

Q: What is the funding pattern of the scheme?
A: The funding pattern consists of a 10% beneficiary contribution, 60% bank loan, and 30% back-ended subsidy from the Government of Nagaland.

Q: Who are the eligible beneficiaries under CMMFI?
A: Eligible beneficiaries include individual farmers, entrepreneurs, unemployed youths, Self-Help Groups (SHGs), Farmer Producer Organizations (FPOs), and cooperative societies.

Q: What are the eligibility criteria for individual applicants?
A: Applicants must be indigenous inhabitants of Nagaland, not defaulters to any bank, possess sufficient land for land-based activities, and have adequate experience or training in the proposed activity.

Q: What are the eligibility criteria for SHGs?
A: SHGs must fulfill the Panchasutra principles: regular meetings, savings, inter-loaning, timely repayment, and up-to-date books of accounts. They should also have sufficient land for land-based activities.

Q: What are the eligibility criteria for FPOs?
A: FPOs should be registered entities with at least three years of audited balance sheets, not in losses, have a minimum of 100 shareholders, and a paid-up capital of at least ₹1,00,000.

Q: Is collateral required for loans under CMMFI?
A: For micro and small enterprise loans up to ₹10 lakh, collateral is not required. Beneficiaries seeking loans above ₹10 lakh can opt for collateral-free loans through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.

Q: How can one apply for scheme?
A: Eligible applicants can apply online through the Credit Portal of Nagaland at https://credit.nagaland.gov.in.

Q: What is the repayment period for loans under CMMFI?
A: The repayment period is up to a maximum of 7 years.